It has been observed that some banks are utilizing ‘at par’ cheque facility extended by Scheduled Commercial Banks not only for their own use but also for their customers, including walk-in customers for facilitating their remittances and payments.

2. Keeping in view the systemic and supervisory concerns that emanate from such an arrangement, RRBs/StCBs/CCBs are advised to utilize the ‘at par’ cheque facility only for:

i) their own use,

ii) their account holders who are KYC compliant provided that all transactions of `50,000.00 or more should be strictly by debit to the customer’s account,

iii) walk-in customers against cash for less than `50,000.00 per individual.

3. In order to utilise the ‘at par’ cheque facility in the above manner, RRBs/ StCBs/ CCBs should maintain

ii) sufficient balances/drawing arrangements with the commercial bank extending such facility for purpose of honouring such instruments.

RRBs/StCBs/CCBs should also ensure that all ‘at par’ cheques issued by them are crossed ‘account payee’ irrespective of the amount involved.

4. RRBs/StCBs/CCBs are advised to make use of more efficient means of remittances for the customers like NEFT or RTGS by providing such services directly or by becoming sub-members of banks providing such services as per regulations in this regard issued by RBI from time to time.